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Construction confidence rises back above 50 in Q3

14th October 2016

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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Despite soft growth in the construction industry, the First National Bank (FNB)/Bureau of Economic Research Civil Confidence Index gained 11 points to 52 in the third quarter, 24 points higher than the first quarter of this year.

This indicates that slightly more than half of the respondents are satisfied with prevailing business conditions. The higher confidence was well supported by the underlying data, particularly in tendering price competition.

“The less keen tendering competition lifted profitability somewhat. However, it is important to note that tendering competition can ease, owing to an increase in the number of tenders or a fall in the number of firms tendering or a combination of the two,” FNB senior industry analyst Jason Muscat said in a statement.

According to Statistics South Africa, growth in the real value of construction works slowed to 0.2% year-on-year in the second quarter, from 4.6% in the first quarter.

On a quarterly basis, construction work was up almost 8%.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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